Bank of India (BoI) has raised ₹2,690 crore via infrastructure bonds of 10-years duration at 7.50 per cent through the NSE Electronic Bidding Platform.
The base issue size was ₹1,500 crore with green shoe option of ₹3,500 crore. This is the Bank’s third infrastructure bond issuance in the current financial year so far.
BoI, in a statement, said it received total of 94 bids amounting to ₹8,845 crore (5.90 times the base issue size). It accepted 26 bids at a cut-off coupon of 7.50 per cent of ₹2,690 crore.
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The public sector bank said the funds raised through these long term bonds will be used for funding long term projects in infrastructure sub-sectors and affordable housing in accordance with RBI guidelines. The funds raised by the Bank through this issue is not meant for financing any particular project, it added.
During the nine months ended December 31, 2024, the Bank has ₹12,500 crore through 10-year bond issuances — Basel III Tier-II bonds (in September amounting to ₹2,500 crore at 7.49 per cent), infrastructure bonds (in July amounting to ₹5,000 crore at 7.54 per cent and in November amounting to ₹5,000 crore at 7.41 per cent).
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